Addex Therapeutics(ADXN) - 2025 Q1 - Quarterly Report

Unaudited Interim Condensed Consolidated Financial Statements Unaudited Interim Condensed Consolidated Balance Sheets Total assets decreased to CHF 9.5 million by March 31, 2025, driven by lower cash and investment values Consolidated Balance Sheet Summary (in Swiss francs) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Assets | | | | Cash and cash equivalents | 2,825,484 | 3,341,738 | | Total current assets | 3,197,278 | 3,541,363 | | Non-Current Assets | | | | Investment accounted for using the equity method | 6,239,691 | 7,087,142 | | Total non-current assets | 6,287,376 | 7,136,940 | | Total Assets | 9,484,654 | 10,678,303 | | Liabilities & Equity | | | | Total current liabilities | 1,056,812 | 802,093 | | Total non-current liabilities | 132,164 | 198,939 | | Total Equity | 8,295,678 | 9,677,271 | | Total Liabilities and Equity | 9,484,654 | 10,678,303 | Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss The company's net loss from continuing operations widened to CHF 1.47 million in Q1 2025 due to no revenue Statement of Comprehensive Loss Summary (in Swiss francs) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue from contract with customer | - | 233,480 | | Operating loss | (606,262) | (788,092) | | Share of net loss of investment (equity method) | (847,451) | - | | Net loss from continuing operations | (1,472,863) | (735,178) | | Net loss from discontinued operations | - | (2,351,961) | | Net loss for the period | (1,472,863) | (3,087,139) | | Total comprehensive loss for the period | (1,406,841) | (3,135,856) | | Basic and diluted loss per share (Total) | (0.01) | (0.03) | Unaudited Interim Condensed Consolidated Statements of Changes in Equity Total equity declined by CHF 1.38 million to CHF 8.30 million in Q1 2025, primarily due to the period's net loss Changes in Equity for Q1 2025 (in Swiss francs) | Description | Amount | | :--- | :--- | | Balance as of January 1, 2025 | 9,677,271 | | Net loss for the period | (1,472,863) | | Other comprehensive income for the period | 66,022 | | Value of share-based services | 24,917 | | Net sales of treasury shares | 331 | | Balance as of March 31, 2025 | 8,295,678 | Unaudited Interim Condensed Consolidated Statements of Cash Flows Net cash used in operations was CHF 0.6 million, leading to a quarter-end cash balance of CHF 2.8 million Statement of Cash Flows Summary (in Swiss francs) | Cash Flow Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | (598,706) | (2,194,379) | | Net cash from financing activities | 97,991 | 164,548 | | Decrease in cash and cash equivalents | (500,715) | (2,029,831) | | Cash and cash equivalents at beginning of period | 3,341,738 | 3,865,481 | | Cash and cash equivalents at end of period | 2,825,484 | 1,627,832 | Unaudited Notes to the Interim Condensed Consolidated Financial Statements General Information Addex is a Swiss clinical-stage biopharma firm developing allosteric modulators for neurological disorders - The company is a clinical-stage biopharmaceutical firm developing novel small molecule allosteric modulators for neurological disorders[14] - The company holds a 20% equity interest in Neurosterix US Holdings LLC, which was acquired as part of a major transaction[15] - The company's shares are traded on the SIX Swiss Exchange (ADXN) and its American Depositary Shares (ADSs) are traded on the Nasdaq Stock Market (ADXN)[16] Material Accounting Estimates and Judgments Management highlights a material uncertainty about its going concern status, with cash funding operations only to mid-June 2026 - Going Concern Warning: A material uncertainty exists that raises substantial doubt about the Group's ability to continue as a going concern as existing cash is only expected to fund operations through mid-June 2026[22] - The business faces risks from health pandemics and geopolitical events that could disrupt clinical trials, supply chains, and the ability to raise capital[23] - The divestment of its drug discovery platform to Neurosterix in Q1 2024 is accounted for as a discontinued operation, for which it received a 20% equity interest[24][25] Segment Reporting The company operates as a single segment, with Q1 2025 income derived solely from services provided by Neurosterix - The company operates in a single operating segment: the discovery, development, and commercialization of small-molecule pharmaceutical products[33] Income by Major Counterparty (in Swiss francs) | Counterparty | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Indivior PLC | - | 233,480 | | Neurosterix Group | 71,055 | - | | Other counterparties | - | 1,430 | | Total | 71,055 | 234,910 | Revenue from Contract with Customer The company recorded no revenue in Q1 2025, and Janssen terminated its license agreement for ADX71149 post-quarter - The research agreement with Indivior PLC generated no revenue in Q1 2025 as it was completed in 2024; in Q1 2024, it had recognized CHF 0.2 million[70] - Janssen Agreement Terminated: On April 17, 2025, Janssen terminated the license agreement for ADX71149 after a Phase 2a epilepsy trial failed its primary endpoint, returning all IP to Addex[72] - No revenue was recognized from the Janssen agreement in either Q1 2025 or Q1 2024[73] Operating Costs Total operating costs from continuing operations decreased by 34% to CHF 0.68 million due to lower R&D and professional fees - The decrease in operating costs was mainly driven by a CHF 0.1 million reduction in external R&D and a CHF 0.1 million reduction in professional fees[77] Operating Costs from Continuing Operations (in Swiss francs) | Cost Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | External research and development cost | 32,583 | 179,110 | | Professional fees | 302,382 | 452,010 | | Staff costs | 101,042 | 68,682 | | Total operating costs | 677,317 | 1,023,002 | Discontinued Operations The company divested its drug discovery platform to Neurosterix for CHF 5.0 million cash and a 20% equity stake - On April 2, 2024, the Group completed the divestment of its allosteric modulator drug discovery technology platform and preclinical programs to Neurosterix Pharma Sàrl[82] - As consideration for the transaction, Addex received gross proceeds of CHF 5.0 million in cash and a 20% equity interest in Neurosterix US Holdings LLC[82] Financial Performance of Discontinued Operations (in Swiss francs) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating loss | - | (1,917,978) | | Legal fees related to the sale | - | (428,311) | | Total net loss from discontinued operations | - | (2,351,961) | Interests in Associates The carrying value of the company's 20% equity interest in Neurosterix decreased to CHF 6.24 million - The initial 20% equity interest in Neurosterix was valued at CHF 9.43 million on April 2, 2024; the loss recognized reflects R&D and G&A expenditures incurred by Neurosterix[90] Change in Carrying Amount of Investment in Neurosterix (in Swiss francs) | Description | Amount | | :--- | :--- | | Beginning of the period (Jan 1, 2025) | 7,087,142 | | Share of net loss of Neurosterix Group | (847,451) | | End of the period (Mar 31, 2025) | 6,239,691 | Events After the Balance Sheet Date Post-quarter, Addex raised CHF 0.67 million from treasury share sales and Janssen terminated its ADX71149 license - From April 1, 2025, to the report's issuance date, the Group sold 11,094,913 treasury shares for total gross proceeds of CHF 669,102[97] - On April 17, 2025, Janssen terminated the license agreement for ADX71149, and the program was returned to the Group[97]